A competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates. competitive market is one in which a large numbers of producers compete with each other to satisfy the wants and needs of a large number of consumers. In a competitive market no single producer, or group of producers, and no single consumer, or group of consumers, can dictate how the market operates.
Only when the annuitant begins to withdraw money from the annuity, he has to pay tax on his gains. Annuitiy holders must be advised of the risks of deferred income taxes when they agree to accept an annuity contract. In the event of the death of the annuitant, the beneficiary is subject to tax.
Payout annuity taxation. There is renewed interest in payout annuities with the increased popularity of guarantees. and the need for certainty or sustainable lifetime income. This often generates tax. questions related to annuities. The tax treatment of an annuity, whether life or term certain, depends on the source of. funds and whether the contract meets the requirements of a prescribed annuity contract. Below is a summary of the tax treatment based on registration and annuity type: